A ltd issued 1000, 5% debentures of Rs 1

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Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

A ltd issued 1000, 5% debentures of Rs 100 each redeemable at a premium of 10%. The amount of interest for one year will be:

Options:

Rs 10,000

Rs 11,000

Rs 5,000

Rs 5,500

Correct Answer:

Rs 5,000

Explanation:

Amount of interest = 100000*5/100
= 5000